Definition:
CRM refers both to a strategy and the software used to manage a company’s interactions with customers and prospects. A CRM platform centralizes customer data, tracks interactions across channels (email, calls, chat), manages leads and sales pipelines, and automates workflows like follow-ups, onboarding, or feedback collection.

CRMs are essential for both B2B and B2C companies and are increasingly powered by AI to predict behavior, personalize messaging, and recommend next best actions.

Core CRM Capabilities:

• Lead and contact management
• Sales tracking and forecasting
• Customer segmentation and targeted marketing
• Support ticketing and service history
• Omnichannel communication (email, WhatsApp, chatbots)

Why Businesses Use CRM:

• Builds strong customer relationships
• Improves sales and marketing alignment
• Increases conversion rates and upselling
• Tracks customer lifecycle from first touch to retention

Popular CRM Tools:

• Salesforce, HubSpot, Zoho CRM, Pipedrive, Microsoft Dynamics CRM

Example Scenario:
A sales rep uses CRM to log every interaction with a lead, see what emails they opened, schedule follow-ups, and track the deal’s progress through the funnel. The system also recommends similar leads based on AI behavior models.